Applied Materials (NASDAQ:AMAT) Trading 5.5% Higher – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT) traded up 5.5% during trading on Tuesday . The company traded as high as $549.67 and last traded at $546.62. Approximately 7,862,167 shares were traded during trading, a decline of 5% from the average session volume of 8,292,550 shares. The stock had previously closed at $518.21.

More Applied Materials News

Here are the key news stories impacting Applied Materials this week:

• Positive Sentiment: AI infrastructure demand supports the long-term outlook. Analysts at Citi reportedly named Applied Materials a top semiconductor pick, arguing that an early-stage AI upcycle could benefit chip-equipment suppliers. Applied Materials’ deposition, etch, inspection and packaging tools are critical to advanced memory, logic and AI-chip production. Citi Analysts See Golden Opportunity in Semiconductor Selloff
• Positive Sentiment: Wall Street is expecting earnings growth ahead of the Aug. 13 report. Forecasts call for a year-over-year improvement, and analysts see potential for a beat based on earnings estimates and recent business momentum. The company previously exceeded expectations with quarterly EPS of $2.86 and revenue of $7.91 billion. Applied Materials Reports Next Week
• Positive Sentiment: Analysts continue to identify substantial upside. The average price target cited in recent coverage is approximately $629, while a more bullish Susquehanna forecast implies considerably greater gains. Applied Materials Fell 11% Last Month
• Neutral Sentiment: The Aug. 13 earnings release is the key near-term catalyst. Expectations are high because of AI-driven demand for memory, logic and advanced packaging, but the stock’s reaction will depend on guidance, order trends and whether results justify the optimism. Applied Materials Earnings on August 13
• Negative Sentiment: Valuation and event risk are limiting enthusiasm. With a price-to-earnings ratio near 50 and a sharp rebound from its recent low, investors may be taking profits ahead of a potentially volatile earnings reaction. What Determines Applied Materials’ Resilience on August 13 Earnings
• Negative Sentiment: Bearish sentiment increased after a downgrade and reported short position. Erste Group Bank moved its rating from “buy” to “hold,” while reports that investor Michael Burry is short AMAT add pressure to the shares and highlight concerns about an AI-related market correction. Applied Materials Faces Fresh Scrutiny After Michael Burry Short Bet

Analyst Upgrades and Downgrades

AMAT has been the topic of several research analyst reports. Wells Fargo & Company increased their target price on Applied Materials from $715.00 to $740.00 and gave the stock an “overweight” rating in a report on Friday, June 26th. HC Wainwright set a $850.00 price objective on shares of Applied Materials in a report on Monday, June 29th. Barclays boosted their target price on shares of Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a research note on Thursday, June 11th. Raymond James Financial set a $650.00 price target on shares of Applied Materials in a research note on Wednesday, June 10th. Finally, The Goldman Sachs Group restated a “buy” rating and issued a $645.00 price objective on shares of Applied Materials in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $603.23.

Applied Materials Stock Performance

The stock’s 50 day moving average is $556.14 and its two-hundred day moving average is $435.59. The firm has a market capitalization of $418.80 billion, a P/E ratio of 49.53, a P/E/G ratio of 1.39 and a beta of 1.61. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80.

Applied Materials (NASDAQ:AMAT) last released its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. The firm had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The business’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities analysts anticipate that Applied Materials, Inc. will post 12.14 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials’s dividend payout ratio is presently 19.91%.

Insider Activity at Applied Materials

In other news, Director Thomas J. Iannotti sold 9,250 shares of the company’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the completion of the sale, the director directly owned 40,559 shares of the company’s stock, valued at $24,326,071.43. This represents a 18.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the sale, the senior vice president owned 134,631 shares in the company, valued at $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Materials

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Financial Freedom LLC acquired a new position in Applied Materials in the first quarter valued at about $28,000. Elevation Wealth Partners LLC raised its position in shares of Applied Materials by 34.8% during the second quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock worth $67,000 after purchasing an additional 24 shares during the period. Cornerstone Financial Management LLC bought a new position in shares of Applied Materials during the 4th quarter valued at about $25,000. Whipplewood Advisors LLC lifted its holdings in shares of Applied Materials by 218.8% during the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock valued at $35,000 after purchasing an additional 70 shares in the last quarter. Finally, Wilkerson Advisory Group LLC acquired a new position in shares of Applied Materials in the 4th quarter valued at approximately $26,000. 80.56% of the stock is owned by institutional investors.

Applied Materials Company Profile

Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.

Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.